Reference no: EM131449382

Can anyone help me to answer following questions?

1. Argentina presented a record of national debt in December of 2002, larger than 160% of GDP. The huge increase in the Government spending during the last decade, among other reasons, contributed to the situation. Additionally, the inflation rate was higher than 15%. Use the loan able funds market, the Keynesian cross, to clarify the macroeconomic consequences of a substantial increase in the Government spending. Explain; use the math, and graphs.

2. Explain using macroeconomic theory how an investment tax break can affect investment, productivities of capital and labor and income. Use the mathematical models to support your explanations and draw the graphs.

3. Consider the following Cobb-Douglas production function /2L1/2

a. Calculate de marginal product of labor. Find the numerical value of MPL when and. In the equilibrium if we consider that the economy employs 8 workers, what would be the real wage? Graph

b. Calculate the MPK when and in the equilibrium what would be the real interest rate. Graph.

4. For the upcoming presidential elections in Spain, some political parties are proposing to increase VAT taxes (sales taxes) as a way to increase revenues and reduce the deficit. Analyze how this economic measure might influence consumption, savings and investment, overall income (use the Keynesian cross). Use graphs and math. Explain using economic reasoning.